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The determinants of housework time

Boosting the efficiency of household production
could have large economic effects

Elevator pitch

The time household members in industrialized
countries spend on housework and shopping is substantial, amounting on
average to about half as much time as is spent on paid employment. Women
bear the brunt of this burden, a difference that is driven in part by the
gender differential in wages. Efforts to reduce the gender wage gap and
alter gendered norms of behavior should reduce the gender bias in household
production time and reduce inefficiency in home production. Policymakers
should also note the impact of tax policy on housework time and consider
ways to reduce the distortions caused by sales and income taxes.

Key findings

Pros

Contributions in the household
sector are often undervalued, leading to underestimates of
economic well-being.

Gender differences in housework time
caused by gendered social norms or discrimination are not
efficient.

Income and sales taxes distort
incentives and lead individuals, especially women, to allocate
more time than is socially optimal to household production.

Women who spend more time on
housework have been found to earn lower wages, suggesting a
vicious cycle, with wage differentials driving allocations to
housework time and housework time driving wage
differentials.

Cons

Household production yields valuable
services and constitutes an important sector of the economy.

Gender differences in housework time
that are caused by gender differences in opportunity costs or
productivity are efficient.

Some observed differences in
housework time could be attributable to preferences; the limited
evidence available on preferences suggests that, on average,
women prefer housework more than men do.

Gender differences in housework time
have been declining and may be contributing to reduced gender
differentials in earnings.

Author's main message

Substantial resources are devoted to household
production, and boosting efficiency in this sector could have large economic
effects. A number of policies could support this effort. Sales and income
taxes motivate people to spend time on housework that would be better spent
on other activities. Basing tax rates on individual rather than household
earnings would reduce such incentives, particularly for women entering
couple households. Policies to reduce labor market discrimination and
discourage gendered norms of behavior would further enhance efficiency, but
any gender differences in housework time that reflect different preferences
or abilities are appropriate.